HD Stock Trading Journal for Perfect Breakout Trade

HD Stock Trading Journal

This HD stock trading journal is a review of a Long Swing Trading 5th wave move on $HD. Before markets opened, on o6 March 2019, we posted a video for a potential Long Swing Trade for $HD. The original Signals Video can be viewed  >>>HERE<<<  . The Signal came from our Elliott Wave Indicator for the Home Depot Stock using a multiple time-frame strategy.

In the original chart screenshot below we can see that the HD Stock had found support at a previous strong support level. This level also coincided with our our automated probability pullback Green zone on its wave 4. Therefore this indicates an 85% probability that the 5th Wave will go on and make a new High in this current Bullish trend. The Pullback zones are part of our Elliott Wave Indicator Suite. Our Stocks swing trading strategy involves trading the 5th Wave of the Elliott Wave sequence, as it is the highest probability move in a “with trend” trade.

The original chart shown below shows the setup with a Long entry price of $187.22 with Stop at $181.86.  Our automated 5th Wave Target zone in Blue was around the $197. Therefore giving a Risk to Reward of 1:1.8.  We had to adjust the entry strategy slightly as me made slightly new wave 4 lows before we finally found support. Therefore, on the 15th March the new order was placed at Long Entry of  $186.42. Stop Loss 186.42 with a target of $198. The trade triggered on the 20th March with our automated 5th Wave Target Zone being hit on the 3rd April.  But the trade wasn’t over! Check below this original Chart for trade management updates.

(Click on Chart to open full size in a new window)

HD Stock Trading Journal – What Happened Next!

Once the trade was entered we reverted to the Daily Time-frame to manage this swing trade on the HD Stock. The price did find initial resistance around $190 for almost 1 week.  Once we got upside momentum out of this range we adjust the stop to just above the entry price. Importantly, this made the trade “Risk Free”. The next move up was with higher accumulation volume each day.  On the 3rd April the price shot into our automated 5th wave target zone with extremely high volume so we decided to keep the trade on as it was going to close near the highs of the day.

Once the price broke out the top of our zone we knew the resistance level around $203 may be too much for the HD stock.  With this in mind, we used an aggressive trade management strategy. This included placing a trailing stop just below the low of two candles behind current trading.  This was adjusted every trading day until we were taken out of the trade on the 10th April for a great 200% profit x risk.

This HD stock trading journal shows a great example of our 5th wave target zone being hit and sensible trade management strategies ensure high profitable trades. Using our Elliott Wave Indicator Suite , this type of move on average take 25 candles to reach our target and in this case we were a little early!  . The chart below shows our automated 5th wave target zone being hit and the price breaking through. Remember, the original Signals Video can be viewed  >>>HERE<<<

(Click on Chart to open full size in a new window)